Technology Changes the Game: Small Business Utopia

Abstract

This chapter focuses on the future of small business lending and transformations in the small business financial ecosystem, making predictions about how Small Business Utopia will look. In this ideal state, a small business’s entire financial life would be accessible through one application, allowing payments to be made or delayed, loans to be acquired, and financial advice to be obtained, all with the push of a button. This innovation would enhance small businesses’ understanding of their cash flows and provide them with timely access to capital that fits their needs. This chapter discusses the impact of big data and artificial intelligence in creating Small Business Utopia, and explores the benefits and risks of “black box” algorithms and machine learning. The author predicts that a small business-focused online bank might be a successful model in the future.